Banks Should Seize Opportunity to Implement Fast-Growing mBanking, IDC Says
AMSTERDAM, JUNE 5, 2001- Tremendous opportunities exist in the mbanking arena for mobile financial services players given that there will be over 270 million European mobile subscribers by 2003, according to IDC.
Although some banks have already entered the mobile space, IDC believes opportunities still exist for those banks that have not yet embraced mbanking. "We recommend they enter the mobile business as soon as possible because second chances do not come around too often in the technology world," said Chris Barnard, research manager of IDC’s European eBusiness and Networking group. The approach to mobile banking varies by country, but a common thread is the care being taken not to repeat the mistake of failing to react to new opportunities as happened with Internet banking.
The mobile value chain is very complex because key players other than banks are vital to conduct transactions. Network operators and handset manufacturers, already enjoying close relationships with customers, will shape the future of mbanking, and IDC expects an increase in the number of alliances between banks and operators as they push mbanking services.
IDC also recognizes that to profit from the large investments required to enter mobile ebusiness, banks need to carefully define their mbanking strategy. "We believe that to be successful in mobile business, banks should clearly define their wireless strategy – understanding which customers to address, the relevance of a multi-channel approach, and the role they want to play along the mobile value chain. Given that banks need to directly cover back-office activities – to ensure contents and back-end integration – they could also decide to expand their presence to additional activities, for example, creating their own portal," Barnard concluded.
Banking on Mobile: Prospects for Western Europe (IDC #LM01H) reviews the mobile banking landscape in Europe and provides key points to keep in mind when implementing mbanking. It reviews the mobile banking value chain and argues that its complexity gives rise to new players in the banking space. Finally, IDC provides clear and directly applicable pointers that financial institutions can keep in mind when planning, implementing, and executing mobile banking initiatives. This report is available to purchase from your local IDC office.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at emea.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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